16258853 Marketing Plan for Titan Industry

8/6/2019 16258853 Marketing Plan for Titan Industry

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TITAN INDUSTRIES-WATCHES

(MARKETING PLAN)

BY

ASHUTOSH KUMAR SINGH

&

NETAI KHATUA

FROM

ICBM SCHOOL OF BUSINESS

EXCELLENCE

ASHUTOSH KUMAR SINGH6/3/2009


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Executive summary:

Titans watch segment is the Indias chief producer of watches and ranks fifth in the world in

production of watches.

Company really understands the psyche of consumer and they offered quality products in

classical design with superior technology.

Today the company has model for every prices segment and every market. Basically it deals

with three target market

High income group

Middle income group, and

Lower income group

Titan alone holds 70% market share in domestic level whereas 60% in organized market.

As our Marketing Objectives is to increases Market Share of the company by 5% in the coming

year as well as to increase the profitability of the company by 10%.

The competitor are also playing an important role to grab the market share .We as the Marketertry to increase the market share by grabbing the opportunity from other company. To achieve

this the company have to follow the marketing strategies, which basically include the

MARKETING MIX.

The marketing strategies basically include the 4 ps .

There the marketer have to focus at first on PRICE ,which basically for The titan is not

affordable in the Mid Segment, where as the competitor like HMT and Maxima are doing good

business by holding market share of 45% where as titan hold the only the 32%,there fore it is

important for the company to reduce price in mid segment.

ICBM-School of Business Excellence Page 2
http://www.titanworld.com/collections/series/WWF


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Though in the improperness or in innovation of the Product, Titan doing well, but there is needof few changes. For example HMT, the nearest competitor innovate BLUE CHIP in the

watches.

We also have to implement this type of innovation to bring the flexibleness in our product.

As it is also important to do some creativity in advertisement by showing the importance of

Time to the mass. The company brand promoter is Amir Khan but the company can make it

attractive by endorsing Katrina Kiaf .

The place can be taken into consideration ,as it is need foe the company to open some show

rooms in the rural area and as the company don/t have so much market share in the foreignmarket ,so to expand the business company should launch its showroom all over the globe in

the more number.

Market share of the competitor in domestic market

HMT 19%

Maxima 13%

Rado 7%

Casio 3%

The strongest selling point of Titan is that it is available and affordable. Titan provides watches

for all segments, like from low-cost Sonata for first time user, Fast-track for the trendy young,

Dash for the kids, and the higher priced Regalia and Nebula to the premium segment customer.

The Indian watch market is estimated at 25 million watches a year, where the domestic sales is 6

million watches per annum. The rural segment is the diverse market in the present scenario. The

key success story of Titan is capturing the rural market on a large scale. The range costs isbetween Rs. 495 to Rs. 1200. And the model is available exclusively in all showrooms and is

sold mainly in small-town in India.



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Domestic Level:

HMT

Maxima-quartz

Rado

Casio

International level:

Espirt

Swatch

Citizen

Tag heuer

Seiko

Cartier

Giordano

Fashion Houses:

Dkny

Gucci



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Adidas

Nike

Bvlgary

Among all these competitors, Maxima-quartz and HMT are major players .The strength and

weakness of the companies varies from segment to segment.

Maxima-quartz:

Strength: hitting hard at mid-price market.

Weakness: lagging behind because of quality compared to Titan.

HMT:

Strength: turnover is very high because of low price (average price for Titan is Rs.1100 while

the price for HMT is Rs.550).

Weakness: the quality, attractiveness, varieties are less compared to Titan Industry.

1. State-owned watch maker, HMT, compete in the domestic market after almost a decade.

2. International player like Espirit, Swatch and Citizen compete in the mid-price segment and

also trying to enter in the domestic market.

3. Timex also making a spiritual comeback by capturing the mid-price segment.

Though the future is uncertain, but according to the present performance of all these companies,

we can assume that they would be the major future competitor of the Titan wristwatch.



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Expectation from the competitor

As we all know that marketing mix is basically consist of 4 ps i. e price,

product, place and promotion.

Price:

Advantage: competitor of mid-price segment will capture the whole

market.

Disadvantage: competitor of premium price segment will enjoy the

more market.

Product:

Advantage: Increased in the quality will increase the cost which will

give benefit to the competitor.

Disadvantage: Quality decrease will help competitor to capture the

whole market.

Place:

Advantage: more number of places of operation will make the

competitor week.

Disadvantage: less number of places of operation will leads to wipe

out from the market.

Promotion:

Advantage: Increase in sales promotion will affect more market

share.



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Disadvantage: decrease in sales promotion give benefit to thecompetitor.

Industrys Role

As there have many competitor exists in this Industry, the competition is too much. Whenever

any company bring changes in its marketing mix, all the companies also implement changes in

their marketing mix to sustain in the competition. By that the structure of whole industry is

changing and affects the competitive forces in the Industry.

Economic forces

Economic landscape

Indian corporate sector is nervous because of current Inflation. This problem occurred not only

in India, but it affected all the countries due to United State financial crisis.

As we came to know from Federation of Indian Chamber of Commerce and Industry (FICCI)

that 64% of the 413 companies are running currently in worst condition from last 6 months.

Consumers view

As we know that Inflation is in double digit figures, but the people who lives in urban area or

metro city, are having optimistic view towards economy.

People think that the economic condition of our country will be improved in the near future.

Purchasing power of consumers

BRAND PURCHASING

POWER

CATEGORY



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(PRICE) RS.FAST

TRACK550-1,430 YOUTH

EXCTA 595-1,430 LOWER MIDDLE CLASS(Office wear)SPECTRA 650-1,830 COMMON CLASS

ROYAL 960-2,830 UPPER- MIDDLE CLASSRAGA 1,420-4,000 UPPER CLASSBANDHAN 1,675-8,085 COUPLESREGALIA 1,725-7770 UPPER MIDDLE CLASS-UPPER CLASS

EDGE4,500-5,200 BUSINESS CLASS

NUBULA 10,000-45,000 UPPER CLASS

The companys watch sales grew by 18.8 per cent and its income increasing from Rs255.34

crore during the second quarter of last year to Rs303.45 crore during the second quarter of this

year. On the basis of the above table and profit figure we easily understand consumer buying

power in target market.

Spending habit of consumers

Despite of high inflation, high oil prices and high volatility in gold prices, watch segment of

Titan Industries doing well in the current fiscal. For these, watch segment sales income increased

from Rs.168.83 crore during the first quarter of last year to Rs.171.89 crore during the

corresponding period this year. These data indicate that consumers spending pattern is

increasing respective target market.

From the above information we can easily understand that consumers buying more of Titan

wristwatch. There are few reasons behind the growth in sales of Titan .They are as follow.

Brand name



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Quality of the products

Features ,which differentiate from others

Attractive models

New innovation

Political forces

Political landscape:

In 2004 /05 the new Government came through election in India.

Our new Government took lots of steps to make the global relation as well as some steps to

develop our country GDP, decreasing the rate of Inflation by decreasing rate of Cash Reserve

ratio (CRR) as well as by decreasing the Repo rate. These all steps help the Industries to get

sustain in the market.

As all the steps help the Titan industry to compete in the watch industry. The performance of this

sector for last few years are-

Revenues:

1. Significant growth over the past three year.

2. Rs.880 crore sales during the latest financial year (over Rs.1000 crores at retail prices)

PROFIT ROCE* PBT (2005/06) -

Rs. 90 Crore* ROCE (2005/06) -

50%

* PBT (2006/07) - * ROCE (2006/07) -



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mechanical and they would start plant to manufacture watches in widevariety in design and prices.

Titan changes the technology in that ways which help in enhance the quality

and the features to increase buyers value. Titan gets advantages in the

target market through innovative technology.

As there is too much competition, if Titan not accept the changes in technology then they cant

sustain in the market. In premium segment, competitor will capture whole market by improve

technology. And in the mid-price segment, other companies will give a tough competition to

titan.

Technological changes

The new marketing innovation can bring a drastically changes in the marketing activities of the

company. The new innovations which can differentiate the company from the competitor are

Implementation of Heart-beat checking system in wrist watch.

Implementation of Blood pressure checking system in the wristwatch

Some companies can come with the watch which help in knowing the mood of

the person.

Sociocultural Forces

Tata believes that improve the quality of the life of people and the employee is the primary

purpose of their business. It uses its resources in the best possible way. They also takes some

reasonably steps to improve the quality of life of the people of the areas in which they operates.



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Tata adopt the Corporate Citizenship Index, Tata Business Excellence Model and Tata Index forSustainable Development which reflect its commitment to its Corporate Social Responsibility

(CSR). Tata spends 5-7% of its profit after tax on several CSR initiatives.

These CSR initiatives are spread across three core areas, such as employee welfare, the

environment and the welfare of the community at large.

B. Target market

Identification

The titan industry basically deals in three segments for its watches. They were as follow.

High Income/Elite consumers

In this segment mainly the consumer who buys a wrist watch as a fashion accessory.

Middle group:



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Review of Marketing Objectives

Current marketing objectives of TATA is to strengthen Indias Industrial base through the proper

utilization of resources like employee and materials. Besides, the company seeks to reach the

height of excellence atmosphere which is free from fear and threat.

Performance Analysis

Titan Industries achieved significant growth during the year ended 2007-08. Watch segment

sales also grew by 17.2 per cent to Rs 918.7 crore. All brands of the company have performed

well and new introductions in gents watches, the Raga Crystal for ladies.

Three year overview of income and capital employed:


0

200

400

600

800

1000

2005-

06

2006-

07

2007-

08

655

784

919

IncomeinRs.Cr.

Year

Watches

0

100

200

300

400

2005-

06

2006-

07

2007-

08

328338

327

inRs.Cr.

Year

Watches
http://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWFhttp://www.titanworld.com/collections/series/WWF


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there is a craze for stylish wristwatch. So, Titan makes the peoples life more glorious bymaking stylish wristwatch.

2. Models: As Titan offers the best and the biggest range to customer to choose the watch

of their choice with an affordable price.

It offers about 14 different names with about 1000plus different varieties with a watch

for literally everyone.

3. Exclusive products: Today Titan holds the pride for say that its products both within the

country and internationally running in battle position. Its EDGE the slimmest watch in

the world position.

Other than these there have few more strength like-

4. Contribution of owned brands and retail. The profit is accounted by being in the

retail space which is booming.

5. Watches are available with popular functions like dates, multifunction andchronographic.

6. Guarantee/warranty

C. Weaknesses

1. Pricing: the average price of Titan in mid-price segment is very high than the othercompetitor. Average price for Titan is Rs.1100 while the price for HMT is Rs.550. In the



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mid-price segment the company is not performing up to the mark due to the lack ofchoice of consumers.

2. Market share: As the average price of Titan wristwatch is far more than the other

competitor, Titan has less market share. The market is more demonstrate by middle class

people and for them Titan is quite costly. Among 75% market share in mid-segment.

Titan market share is between 18-20% which is far lower than HMT and Maxima.

3. Globalized: As the company is Indian based which leads it to the strength, where as it is

the weakness also because the company not sufficiently globalized.

D. Opportunities

1. Seasonality: At the time of festival, like Diwali Titan promotes Nebula, Bandhan

because there is demand for the products.

- Gold watches and pairs are the like as a wedding occasion.

-The fast track brand is promoted in month of June-August when schools and

colleges re-open.

2. Gifting concept: Titan started as a brand which was associated with gifting and relation.

The fight concept sells well for people have come to associate Titan with lovecare and

makes emotion run high.

3. Exchanging offer: The Titan stores offer exchange offer of any old watch, of any make,

in any condition functional or otherwise and receive a flat discount of 25% on their

purchase of a brand new, stylish and technologically advanced watch from Titan.

D. Threats



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1. Competitor: As we know that lots of Foreign brands are entering in our country withtheir branded watches. As the removal of quantitative restrictions on import watches leads to

threat to titan.

2. Premium segment: As in premium segment Titan is getting threats from reputed

international brand such as Espirit, Swatch and Citizen.

3. Mobile:Now a days people can get the time and the other feature in mobile phone. So,

the need of wristwatch is in decreasing trend. People can talk and see the time in a cell phone

and some people think that there is no need of wristwatch.

IV. Marketing Objectives:

Titan industries in watch holds 70% in Domestic level and 60% in Share in organized sector

market.

Companies the marketing objectives is to increase in market share by 5% .

Before implementing the of marketing strategies we must have to focus on certain things ,which

include the BCG Matrix representation.

Titan industries has registered an Income of Rs.1,104.85 crore as compared to previous year

which was Rs 7,25.11. In all the income the Titan industry had contributed Rs.3,03.45 crore.



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BCG matrix helps us to understand the watches playing a important role for Titan industries.

Here we are considering the different watches as in different segment according to its

performance as well as the market share.

? (INFINITY):As the Titan launched a 4 feet tall watch Replica created by acclaimed sculptor Artist Mr.Arun

Verma .

The replica was launched on 13th August 2008 in New Delhi.

The INFINITY this unique 4 feet tall watch weight around 70 kgs with solid circumfarece of 8

feet and width of 30 inches. This watch contains 800 dials and 1800 straps.

TITAN -WWF:



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The titan- wwf collection is inspired from six species namely the Tiger, Indian Rahino Gnageticriver Dolphin ,Red Panda ,Whale shark and Oliver Ridley Turtle.

Earlier they had launched Heritage collection about a year back based on beautiful monument of

India including The Taj-Mahal, Lakshmi Vials Place, Jharokha, Konark ,Ajanta. As it is the new

collection it requires more investment for Tiatn-wwf as the market growth is also high there.

It include the watches namely REGALIA, EDGE and NEBULA.

Cash Cow:

It basically include the watches Fast Track, Exacta, pectra for the titan. As in this segment these

watches are playing important role so it require certain amount of money which will help it out

to sustain into the market as well help in liquidity.

Marketing Mix:

PRICE

PRODUCT

PROMOTION

PLACE

Price:

As achieve our marketing our marketing objectives, we can do some change in the pricing .

The main consideration will be in changing price are followings.

A. Survival:



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In case of some of the watches titan prices them according to the features .The Exacta is a simplesteel watch priced at Rs.600-1,100. As the company also deals with Spectra, Raga through

pricing policy.

B. Market share:

As we know that 70% of sales in watches come from the lower segment, therefore by pricing

Sonata at 350 onwards with guarantee.

Titan prices its world watches which compared equal to an international players like Calvin

Klien where a customer pays 4 times as value of the world watch, therefore market with low

prices to international players to gain market share.

C. Market Skimming: In Indian watch industry there is no one offering pure gold watches,

watches in pair, jewellery watches. Here Titan offers there product with the Indian touch in its

design, the product, the love.

Product:

Quality and leadership are the two main terms for the Titan. As to achieve the marketing

objectives this aspects should also be considered.

A. Product line: To increase the sales, the difference in the prices of the watches are justified by

the features.

B. Product pyramid: Portfolio of Titans product is of 3 distinct price-range that can be

defined in general, as Popular, Mid, and Premium. At the popular segment, the emphasis is on in

volumes but not in margins. At the premium segment, the emphasis is on profits and image but

not in volumes. Obviously, company giving more emphasis at the top of the pyramid as profits at

the top of the pyramid is very high. This pyramid guided the strategy of Titan.

C. Product strategy: Titan was first focused only on the premium segment of the watch market.

As per the product strategy they took, Titan moved in to the mass market for watches. To widenbase, Titan created new segments and increasingly focusing on segments individually. In the past

few years Titan has took a lot of initiatives to focused on specific segments.



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D. Product Quality: Quality and leadership are synonymous to Titan. It seek to achieve boththrough their value for products compared to their prices.

Promotion:

Promotional pricing:

A. Marketing pricing: As by opening new shops such as the world of Titan buy

directly from the dealer and hence the element of middleman is not there.

Here the retailer in this category buys watches for 17-18% lesser than MRP and hence they areable to get the 17% profit margin on sales.

It is managing to successfully convince to the customer of the perceived value of WORLD

WATCH using hoarding all around the city, increasing buyer image, trust worthiness,

innovation, differentiation, value for the product.

Price discount and allowances: Every year Titan comes with a price discount sale on the MRP

of the watches. The allowances varies from one segment to another.

B. Creative advertising: Titan introduces a contest on cartoon network in india.com

which invites children to use creativity and design watch.

The prize winning design was launched as a new watch in summer 2002 collection .

Type of advertising: Titan believes in making its ads clean, well made, touch on emotional

chord. As the company is using celebrities or superstars that is Amir Khan for the Titan watches.

As here we can say that a female actress would be more effective for the promotional purpose. It

can be Katrina Kaif, as now she is one of the popular actress in Bollywood.

C. Promotion on occasion: Titan is one of the company which formally believes in the

policy of promotion the product based on the occasions.



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Place:

Keeping in mind about the young trendy and fashionable consumers, Titan distribute its product

and set up world of titan in different region. The consumers life style in India, especially in

urban area(because the turnover in urban area is 210 million, while the turnover in rural area is

90 million) plays a significant role in the success of Titan.

A.Time Zone: Titan Industries brings together the countrys leading watch brands under one

roof, providing the customer with variety in brands, looks and price ranges and also efficient

after-sales service. These 1142 Time Zones located across 89 towns which offer its customer the

complete watch shopping experience.

B.Value Mart: These outlets sell surplus stocks of Titan watches at reduced prices. By doing

these it offering fabulous value for money with the same warranty as a regular full-priced watch

enjoy. However these shops would not be placed in the main locations and not working as a

normal shops. This is to make the customer go to the shop rather than the shop calling the

customer and hence the locations are not very suitable for shopping.

C.Sonata Stores: Sonata stores is also an Authorized Service Centre for Sonata & Titan brands.

Sonata store meet the large scale demand for the watch and also to attract customers in more.

These shops had full stocks of the watch in demand whereas the others could afford to maintain

only limited stock.

D. Head office, regional office, showrooms:

Offices Address Telephone Fax Email

Corporate

Office

Tower A, Golden EnclaveAirport Road, Bangalore -

560 017

+91-80-66609000, +91-80-

6660 9027, +91-80-6660 9028

+91-80-25269923, +91-80-

2526 3001

[email protected]

Regional No. 202, Okhla Industrial 011-66603260 / [email protected]

mailto:[email protected]:[email protected]://www.titanworld.com/collections/series/WWFmailto:[email protected]:[email protected]


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Office

NorthArea, Phase 3, New Delhi

66628680 /26332619 /

26332620Regional

Office

East

Block 'C', 8th Floor,

Apeejay House 15, Park

Street Kolkata - 700 016

033-22495553 /

5556 [email protected]

Regional

Office West

The Metropolitan 9th

Floor, Plot No. C-26/27

Bandra-Kurla ComplexBandra East Mumbai - 400

051

022-26571128 -

[email protected]

RegionalOffice

South

Mitra Towers #10/4Kasturba Road Bangalore -

560 001

080-4150 4000080-41504111

[email protected]

IN HYDERABAD:

16-11-741-C/2B

NANDINI COMPLEX, DILSUKHNAGAR500036

PH: 040-24040019AMRUTHA MALL, RAJ BHAVAN ROADBEGUMPET, PANJAGUTTA500016

PH: 040- 23325056 55611424

2, UPPER GROUND FLOOR

METHODIST COMPLEX, ABIDS500001

PH: 040-55513580

PRASADS, OFF. N.T.R.GARDENS

L.I.C.DIVISION P.O.500063

PH: 040-23450228

103&104, ALLURI TRADE CENTRE

NEAR KPHB COLONY, KUKATPALLY500 072PH: 23062744/ 23060654

mailto:[email protected]:[email protected]:[email protected]://www.titanworld.com/collections/series/WWFmailto:[email protected]:[email protected]:[email protected]


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LIBERTY PLAZA3-6-365, BASHEERBAGH500029

PH: 040-23220107

SHOP NO 4, CITY CENTRE MALL

BANJARA HILLS500 072

PH: 040-66611888

2-85,Chandanagar,

500050

040- 23030307/66139139

MBR PLAZA,(NEXT TO LEVIS),

DR.A.S.RAO NAGAR,040-42213362

DOOR NO.3-10-6,CG GOPAL RAO COLONY,TIRUMALGHERI MAIN ROAD,KARKHANA,500015

Marketing Implementations:

Marketing plan basically implemented on the basis of market segmentation .

We have gone through the target market segment which basically include

High income class

Middle income class

Lower income class

The marketing mix is the part of marketing strategies ,which help to the company to match the

needs of the consumer as well as the need of company, because we know that MARKETING



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IS THE SOCITAL PROCESS WHICH HELP IN FULLFILLMENT OF THE NEED,DEMAND OF THE CONSUMER AT A PROFIT.

Implementation is an integral part of strategy. It make sense when it is implemented into Indian

jewellery market it saw an opportunity for an organized sector. The customer was moving

towards branded goods in other segments. Titan did the process of creating brands in the minds

of customer.

Budget and control:

It is very important to make a control on Budget to reduce the operating cost which we can

reduce to certain amount by the following ways.

Retailing:

Titan bring in the concept of retailing into the watch market ,which will really help in making

the Direct relation with customer. This will help in reducing the cost of intermediaries.

Advertisements cost:

As for reducing the cost of companies we can take advertisement into consideration. We canreduce the TV ads cost by reducing the duration of advertisement.

Source of informations:

www.titanwold.com

www.tata.com/titanwww.google.com

www.indianfoline.com

http://www.titanwold.com/http://www.tata.com/titanhttp://www.google.com/http://www.indianfoline.com/http://www.titanworld.com/collections/series/WWFhttp://www.titanwold.com/http://www.tata.com/titanhttp://www.google.com/http://www.indianfoline.com/


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www.thehindu.comwww.economictimes.com

BOOKS REFERED

MARKETING MANAGEMENT PHILIP KOTLER

http://www.thehindu.com/http://www.economictimes.com/http://www.titanworld.com/collections/series/WWFhttp://www.thehindu.com/http://www.economictimes.com/

16258853 Marketing Plan for Titan Industry

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